In this article, we discuss the 10 stocks Jeffrey Altman’s Owl Creek Asset Management is buying. If you want to skip our detailed analysis of Owl Creek Asset Management’s stock history and strategy, go directly to Jeffrey Altman’s Owl Creek Asset Management is Buying These 5 Stocks.
Founded by Jeffrey Alan Altman in 2001 and headquartered in New York, USA, Owl Creek Asset Management is a medium-sized hedge fund that has gained a large influence in the industry since its inception. With 17 clients and a portfolio value of $2.178 billion, the hedge fund focuses on finance, utilities and telecommunications.
As of the second quarter, the fund has stakes in several companies, including big names like Alphabet Inc. (NASDAQ:GOOG), Alibaba (NYSE:BABA), and Cano Health, Inc. (NYSE:CANO).
In the second quarter of 2021, as per Owl Creek’s 13F filings, its top ten holdings made up a whopping 57.1% of the firm’s portfolio, with a major concentration of the portfolio value consisting of utilities and telecommunication. Moreover, the hedge fund made new purchases in 167 stocks, bought additional purchases in 20 stocks, sold out of 102 stocks, and reduced holdings in 19 stocks.
Jeffrey Altman of Owl Creek Asset Management
Why pay attention to Own Creek’s stock picks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
Keeping this in mind, let’s get into the 10 stocks Owl Creek Asset Management is buying. The companies listed in the article are picked from the investment portfolio of Owl Creek Asset Management at the end of the second quarter of 2021.
Jeffrey Altman’s Owl Creek Asset Management is Buying These 10 Stocks
10. Cigna Corporation (NYSE:CI)
Owl Creek’s Stake Value: $84,869,000
Percentage of Owl Creek’s 13F Portfolio: 3.89%
Number of Hedge Fund Holders: 63
Based in Connecticut, USA, Cigna Corporation (NYSE:CI) is a multinational managed healthcare and insurance company. Owl Creek has an $84 million stake in the company as of the end of June.
Artisan Value Fund, in its Q4 2020 investor letter, mentioned Cigna Corporation, emphasizing their confident views on the company. Here is what the fund said:
“New purchases include Cigna. Cigna is a leading managed care company which operates through the following major segments: health services, integrated medical, international markets and group disability. It’s one of the few managed care organizations in the United States with the scale and size to compete effectively. Cigna has recently focused on deleveraging its balance sheet and further diversifying its business, after completing the Express Scripts acquisition in late 2018. Additionally, the company has partnered with Amazon, which will offer two new pharmacy options—including a self-pay offering. Cigna will administer the self-pay option through its health services division Evernorth. The partnership should be one of many strong earnings drivers for Cigna, which we believe is currently trading at an attractive valuation.”
9. Exelon Corporation (NASDAQ:EXC)
Owl Creek’s Stake Value: $86,010,000
Percentage of Owl Creek’s 13F Portfolio: 3.94%
Number of Hedge Fund Holders: 35
Exelon Corporation (NASDAQ:EXC), based in Chicago, USA, is a Fortune 100 energy company ranked at number 9 on the list of 10 best stocks Owl Creek Asset Management is buying.
In the third quarter, Exelon (NASDAQ:EXC) posted an EPS of $1.09, beating estimates by $0.01. Revenue in the quarter jumped 0.7% and beat estimates by $420 million at $8.91 billion.
8. General Motors Company (NYSE:GM)
Owl Creek’s Stake Value: $86,125,000
Percentage of Owl Creek’s 13F Portfolio: 3.95%
Number of Hedge Fund Holders: 86
Owl Creek has an $86 million stake in General Motors as of the end of June.
Recently, Wedbush Securities praised the company over its EV efforts. Analyst Dan Ives said he believes the company’s EV story is going to get recognized by the Street. Ives thinks General Motors (GM) can convert 20% of its massive customer base to EVs by 2026.
Junto Investments, in their investor letter of Q4 2020, mention General Motors Company (NYSE:GM). Here is what they said:
“General Motors was the biggest gainer. We managed to buy it at a screamingly cheap price in the middle of March. A lot of interesting news has emerged about GM recently, including the new electric product delivery system BrightDrop and GM Cruise’s team-up with Microsoft Azure to commercialize self-driving cars in 2021. GM’s intrinsic value is crystallizing and the company is worth a whole lot more than is still reflected in the market.”
7. Equitable Holdings Inc. (NYSE:EQH)
Owl Creek’s Stake Value: $86,399,000
Percentage of Owl Creek’s 13F Portfolio: 3.96%
Number of Hedge Fund Holders: 45
On July 19, Citi analyst Suneet Kamath kept a Buy rating on Equitable Holdings Inc. (NYSE:EQH).
As of the end of the second quarter, 45 funds in the database of Insider Monkey reported owning stakes in the company.
In the third quarter, the company’s adjusted EPS came in at $1.94, beating the estimates by $0.55. Revenue jumped 95% in the period.
6. Facebook Inc. (NASDAQ:FB)
Owl Creek’s Stake Value: $93,308,000
Percentage of Owl Creek’s 13F Portfolio: 4.28%
Number of Hedge Fund Holders: 266
Facebook, now Meta Platforms Inc., is one of the most famous stocks among the elite hedge funds tracked by Insider Monkey. A total of 266 funds held stakes in the company at the end of June.
In its Q2 2021 investment letter, First Eagle Investment Management has remarked positively about Facebook. Here is what the letter said:
“Leading contributors in the First Eagle Global Fund this quarter included Facebook, Inc. Class A. Facebook has continued to post impressive results for both revenue and active users of its traditional platforms. In the meantime, the social media giant continues to make progress on new initiatives—like Facebook Horizon (virtual reality) and Facebook Shops (e-commerce)—and maintains attractive monetization optionality around services like Messenger and WhatsApp.”
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Disclosure. None. Jeffrey Altman’s Owl Creek Asset Management is Buying These 10 Stocks is originally published on Insider Monkey.
